The outlook for global growth stocks has become darker in 2025. The FTSE 100 and FTSE 250 have dropped 3% and 3.6%, respectively, during the last month as new trade tariffs have loomed. There’s a good chance they will head lower still.
Investors may be able to shield themselves from further market turbulence by purchasing shares at discounted valuations. Their low prices provide a margin of safety when faced with external challenges or internal setbacks
With this in mind, here are two growth shares to consider whose rock-bottom prices could offer resilience for investors.
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NCC Group
While the broader index has dropped in recent weeks, cybersecurity specialist NCC Group (LSE:NCC) has actually risen in value despite elevated market tension. It’s gained 5.1% in value over the past month.
This in part reflects the essential service it provides. NCC supplies incident response, technical assurance and consulting services to protect businesses against cyber attacks. As the digital economy grows and the number of malicious online events increases exponentially, spending on internet security is essential rather than a luxury, providing the business with profits stability.
Yet this FTSE 250 firm is far from boring. I think it has considerable growth potential, even though it faces competition from US operators (like McAfee) which have better brand power and deeper pockets.
City analysts think NCC’s earnings will rise 53% for this financial year (to May 2025), and by another 30% in the following fiscal period. This results in what I consider a reasonable price-to-earnings (P/E) ratio of 26.3 times for the current financial year.
By comparison, the forward P/E ratio for the broader S&P 500 information technology sector stands at 34.3 times.
Additionally, NCC’s sub-1 price-to-earnings growth (PEG) multiple of 0.7 ratio for financial 2025 suggests excellent value.
Babcock International
European defence companies like Babcock International (LSE:BAB) are vulnerable to a drop in US arms budgets right now. They are also at risk of supply chain problems that impact hardware deliveries.
However, it’s crucial to recognise the substantial opportunities these businesses also have, as other NATO members rapidly rearm to compensate for declining US spending. I believe this particular FTSE 100 operator could be better placed than many of its peers too.
Not only does Babcock generate most of its revenues from outside the US (the UK alone accounts for 74% of sales). It also generates lots of business from the civil sector, where its operations include assistance with building and decommissioning nuclear plants.
Defence contractors like this are traditional safe havens in uncertain time like this. This is because global defence spending by large tends to remain unaffected by economic conditions, again a reflection of the critical products they supply.
These flight-to-safety qualities have helped Babcock shares gain 2.9% in value over the past month.
City analysts think the business will follow a 48% increase in annual earnings in the last financial year (to March 2025) with an 11% rise in fiscal 2026. This leaves it trading on a forward P/E ratio of 14.5 times, making it one of the best-value defence stocks out there.
